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tv   The Kudlow Report  CNBC  September 30, 2009 7:00pm-8:00pm EDT

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tonight on "the kudlow report." some huge late-breaking news. b of aceo ken lewis is now out. and famed auto man and former racer roger penske pulls his plug to buy saturn. that spells the end of saturn. we're going to bring you the latest breaking news on these major stories. plus, stocks fell a bit today, but they beat the september
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swoon, up 2% for the dow, 3.5% for the s&p 500, the nas up nearly sick. the broad s&p 500 rose 15% in the third quarter. we'll look ahead at stocks in q-4, as well as prospects for recovery and profits and the fed. even kay bailey hutchinson will tell us why she's leaving washington to go home and run for the texas state house and finally, john boehner takes on president obama over the copenhagen chicago olympic trip. fasten your seat belt. the "kudlow report" begins right now. >> breaking news about b of
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aceo's ken lewis's unexpected early departure. let us goe right to charlie gasparino, author of "the sellout with the breaking details on ken lewis. ken lewis, seemed real much earlier, charlie. what's your take? >> you know, last week, larry, i reported that they were making prerations for his exit, if he should be charged in one of these probes into his, whether he failed for the bonuses. did he disclose the $4 billion in bonuses that would happen to go to merrill lynch. whether he disclosed that br before or after the shareholder vote. so, you know, we knew that, you know, this was kind of on the drawing board to a certain extent. and that basically what i was hearing from b of a at the time is if he gets charged by the
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attorney general that he wasn't going to resign. but if he got charged or could get charged by the sec, that he would probably have to resign. and the reason why is the se skr the lead regulator in the securities part of the business. here's the interesting thing. when we broke the story today on "fast money" what i reported was simply this. what b of a were telling me is that, he's not going because of any board pressure. he's not going because, you know, the regulators are forcing that. he's going because he felt it was the right thing to do. now, here's the interesting thing. there's a confluence about what i said last week about the sec and the right thing to do. he's likely to face some charge. he could get charged by the sec based on everything we're hearing.
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and amid that investigation, it's probably -- and i'm not saying he will. i'm just saying he could. there's clearly a likelihood. you know, cuomo's office as well. >> what i'm saying, when those two things come together, i think he just took one for the team. >> is this a scalp for new york ag andrew cuomo who's certainly going to run for governor? is that a skal snp. >> yeah, it is. and it's unfortunate. because listen, larry, i'm not going to defend everything ken lewis did. but i tell you, in my book, i did monday morning quarterbacking about whether ken lewis should have done more disclosure, whether he did the right thing in terms of buying merrill lynch and whether john thain was completely honest with him about everything. doi monday morning quarterbacking, but in doing that monday morning quarterbacking bs, i just write a book. i don't bring charges against somebody.
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eliot spitzer, one of the most damaging things about eliot spitzer is he kind of laid the template for these other state regulators to go after people, and, you know, this isn't -- you know, when it really comes down it, was this that big of a crime that ken lewis did? he should have done more disclosure, yes. but was it -- >> was it a crime, charlie? >> did it cross that threshold and i don't know. especially within that context of what was going on back then. him relying on lawyers, they -- you know, he bought merrill lynch and people thought he was a savior when he bought merrill lynch. merrill lynch was going to impoed and if they imploded that would have been, you know, three firms that went in a year. >> and he bought countrywide, right? they're doing rather well. merrill lynch is doing rather well. and he may have saved the shareholders at the end of the day. he may have saved the whole country . >> i just hope that andrew cuomo
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has more on ken lewis than some sort of like, you know, he was weighing the odds of whether he should have disclosed the bonuses or not. there has to be something more there than we're revisiting this thing in a major way. >> is there sec actions down the road? >> he says no. they say they don't think he's going to be charged be but i'll telling you, i have it on very good authority that what they concluded internally was that if he got -- if the sec charges him, he's out. we reported that last week and this week he's out. i'm not there. i'm giving the viewers all the facts. let they want put it together. who's going to replace him? we had a list of brian moynihan, the head of the consumer bank, there's the list that i put together today.
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the chief risk officer, you know, listen, i think brian moynihan is a capable guy. i think -- those are people that i no pe those two i hear are eternally considered the odds-on. but i tell you, that is not a list that you would think would necessarily run a big bank. >> how about bob steele? former treasury official. >> okay, you really want to go there? bob steele came on jim cramer's show and basically said everything was a-okay with wachovia and it blew up the next day. i like bob steele but that's a little bit of a problem when you start dancing around like that, being hyper, legal and technical and the reality is that you're, you know, it looks like you're misleading people. listen, there's board members that are apparently pretty good. although a couple of them, there are a coup of names they mentioned earlier today, and i tell you, these are names that escape me. one guy was the number two of
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bank one, another board member was, i believe, the head of fleet boston. the names escape me right now. but i tell you -- there we go, charles gifford. these are both board members. they're both in their late '60s. my producer said i know you mentioned it, but they're both, like, 67 years old. should they be running a bank. she made a great point. i wonder if they don't go outside. >> be sure to tune in tomorrow morning for much more on ken lewis's departure. now, let us turn to another late-breaking story today. gm plans on closing its saturn brand after roger penske called off an agreement to buy the brand. well, phil lebeau has the full
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report. this is a bit of a shocker, too, is it not? >> it is, because people thought this deal between penske and general motors to buy saturn would be rolled off. they need to find a third party of vehicles. they could not rea-- they say we not going to supply you with vehicles. i can't get them from general motors anymore, i'm not going to buy them. general motors we're not going to go out and look for another buyer. we're going to continue with the winddown which, by the way, larry, will have to happen by the end of 2010. i suspect we're going to see a number of dealers wind down
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their saturn business long before that. they only have about a 50-day supply on hand. gm has a low production rate going for all of its models including the saturn models. i would not be surprised if we see general motors and the dealers quickly wind down their saturn brands. it was wildly popular in the early 1990s. 20 years later, it's done. >> the u.s. tax payers at the moment own general motors. be what does this do to gm? >> doesn't have a whole lot of impact. this is not one that was going to move the needle in terms of the bottom line. when the aurt toe task force went to general motors and said listen, you've got eight brands, a streamline, you've got to get rid of these outside brands, smaller brands, general motors said okay, what do we have to do to sell about 350 dealerships. part of the saturn distribution network. well, that's what this agreement
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was all about, larry. it was not about making a deal so they could make a lot of money with penske automotive group. my understanding was it was not worth a lot of money. this was not going to be a huge deal in terms of the bottom line. coming up, folks, kay bailey hutchinson is telling us why she's leaving washington to go home to run for the texas state house. you're watching cnbc, first in business worldwide. you can never predict business in a free enterprise economy. lots of thicks happened that we don't expect to happen. that's what makes it greet. i'll be right back in just a few moments. 100 years of engineering excellence is right on time. it's gmc truck month. shop sierra 1500 slt with the 403 horsepower 6.2 liter v8. it's the most powerful half ton v8 in its class.
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more breaking news. this time in washington, d.c. despite the ongoing debate over obamacare, senate democrats today moved forward with a new cap and trade climate bill. our chief washington correspondent john harwood joins us now with the full story. hello, john. what's cooking here? >> yes, senate democratic liberals got smacked down in the votes. today, liberals led by john kerry and barbara boxer laid down their marker on climate change, the issue waiting after health care.
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and what senator kerry male the point was, it's not a piece of legislation that's going to damage the economy, it's about protecting the country. >> was introduced this legislation because of one word -- security. economic security, energy security, national security. america knows that that is the bat that will we face right now. >> now the security issue is largely about trying to free dependence on foreign oil. but obama says green jobs are the kind of jobs that will last. >>. >> every dollar we invest in clean energy creating as many as four times the jobs as the dollar invested in the old fuels. this will create good jobs in
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every region of the country for good workers with every single eblg casual back ground and these are jobs that stay here in america. they can not be shipped overseas. >> now, larry, i think this legislation is not about getting it passed by the end of the year. part of the game is with the house having passed a cap and trade bill that limits carbon emissions, the senate is laying down a marker that will give the president something to take to copenhagen. the carbon reductions called for in the boxer-kerry bill are somewhat tougher than those that passed the house already. it's going to be a real fight to get them through the senate. we're note going to see that battle play out on the floor this year that will be to 2010. >> when you say copenhagen, is that are for the chicago olympics? or global warming? >> no. >> that's a joke. >> i totally get it.
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i think the president has made himself a bite1 vulnerable by having said he was too busy with issues like health care to go to copenhagen with the olympics and now reversing course saying i'm going to go. that's separate from the trip in december for kyoto. let's bring in ms. kay bailey hutchinson. senator, great to see you. thanks for coming back on. >> thank you, larry. great to be here. >> just want to get your take before we go to texas and talk about your gubernatorial run. the kerry-boxer cap and trade bill. i just heard senator kerry who is a personal friend, he's been a guest in the show. he said green jobs will create four time as many as the carbon jobs lost. that's not the experience in
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europe. that's exactly the reverse. for every green job they lost two carbon jobs and maybe four carbon jobs. so you've got to straighten me out on this. you're the expert. >> you've got it. you know that this is going to send our american jobs overseas. what they're doing is they're going to tax the industries, our basic resources for energy and our country and it's going to send the jobs overseas. the refinery capacity, the refiners are going to pay taxes. every person's electricity bill is going to go up, the cost of gasoline is going to go up. every form of energy will go up. it is unilateral disarmament. and further, larry, even the efa administrator admitted if america does this by ourself, which urks of course, our law will do this by ourselves, it won't have any impact on the global carbon emissions problem.
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so we are taking away our own jobs, we are increasing the cost of electricity and energy for every american family, and it's not going to help the global environment because no other country is going to have these kinds of standards. >> i've got to ask you, as i understand it, the kerry-boxer bill restores the epa's ability to regulate carbon emissions. that actually was taken out of the house bill. now it's been put in. is this like a double-whammy, cap and trade and tax and epa regulation? i don't know if we can take that. i don't know if my system can take that. >> it's just so naive. the sad thing about this is the one thing we can reduce, the most efficient form of energy that we can make is nuclear. and this administration has refused to even allow the increase in loan guarantees that
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would encourage more people to invest in nuclear power plants. it's the cleanest energy, the safest and the most efficient. '. >> i'm going to skip over copenhagen for a second. john baner is going to talk about that later in the program. look, let me go to the texas story. you've been 16 years in the senate by my count. you've become a national political figure. why are you leaving now to go run for governor of texas? >> i am very concerned about what is happening in texas. we have increased state taxes in texas over the last five years. business taxes are um. our property taxes are up. i'm veriried about the republican party going down. i'm worried whether we're going to build the ronald reagan big tent in the republican party or if we're going to continue to shrink our base. we're too close to losing the
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texas house of representatives. and that means it's the beginning of the turning of texas democrats and i don't want that to happen. because i think that a conservative, mainstream responsible leadership should be republican. >> what's the word? you're a creature of washington, heaven forred by. how do you react to that? >> i've been representing texas in washington. i've been fwoet voeting against obama big spending. fighting for the big government takeover of health care. now i'm going to be fieghting cp and trade, which is really cap and tax. i think the fact that those of us who are republicans in washington representing our states and trying to stop all this bad stuff is what people should look at. it's kind of cheap political talk to paint someone who is fighting all of this in washington as of washington.
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>> just come back to this tax issue. it's very interesting. the tax foundation, nonpartisan, highly regarded. they've come out with their new 2010 state rankings. texas is 46th now in the corporate tax burden. that's almost as bad as new york and new jersey. 39th in sales taxes. and 30th in high property taxes. do you have programs you're going to push in this campaign? >> yes. i am going to attempt to lower property taxes. i'm certainly going to reform that business tax under way. i think that's long.
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it's going to be a great state in which to do business. that is good, but these high taxes are going to mitigate the greatne greatness. i want to go in the direction of low taxes. a really limited government. and i still think that texas needs new leadership to do that. >> so among other issues you're going to run a supply side tax cut and campaign is, that what i'm hearing? >> yes, yes. i'm going to be for cutting taxes. i'm going to be for addressing our problems. governor perry, unfortunately, has been touting toll roads. that's another tax. i don't think every highway in texas should be tolled. i think we should have more innovative solutions. i think there are going to be differences. i think it's time we start looking at limited government and low taxes to build our
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republican party back and welcome people in. i think the governor has kind of strayed and i think it's time to bring texas back. >> thank you. we hope to see you a bunch more during this campaign. we appreciate it this evening. >> thank you, larry. coming up, house republican leader john boehner takes on president obama over the copenhagen chicago olympic trip and some other key issues facing washington, d.c. right up next, the governator's state taxes unveiled a dramatic new overhaul over the california state system. i'm going to take a walk on the supply side in my supply side minute and talk about this incredible development in california. you heard kay bailey hutchinson may be moving supply side in texas. "the kudlow report" will be right back. capitalism, free markets on the supply side.
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all right, hee here's tonight's supply side minute. a tack-cutting tsunami may be
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sweeping over california. believe it or not, a bipartisan state commission has recommended something that is close to a flat tax by slash iing tax rate across the board. personal income tax codes from 10.5% to 7.5%. the 9% corporate tax is being abolished in favor of a 4% business net receipt tax. and the 5% sales tax that funds the state's general revenues will be abolished. we! and according to the wall street journal editorial page, all california investment and capital income will be tax free. this is a wow. people might start moving back into the golden state because taxes matter. incentives matter for economic growth. that's the nutshell of supply side economics. if sacramento taxes california less, then they will see much more growth and prosperity in
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california. that 12% unemployment rate will start to wither away. this returns to the supply side is so exciting and bravo for running this bipartisan commission. now let's see if the gubernatorial candidates, including meg whitman and seve poisner, both of whom have been on this program will embrace this new supply side model. we're going to talk about stocks and the fed after a great september and a spectacular third quarter. what about the c-shaped economic recovery for profits and growth? let's see what they have toe tell us. keep it right here.
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how you could start saving. >> stocks did lose ground thank you but they totally beat the pessimistic september squoon. the dow gained over 2%, the s&p 5003.50%, the nasdaq 5.6% in september. and for the third quarter as a whole, all of them were up, basically about 15%.
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now, in this quarter, financials, industrials and materials led the way. consumer discretionary, not far behind. the drivers of this, better profits. the end of recession turning into recovery. and of course, continued easy fed policy. yeah, there's something called fiscal stimulus, which i think was completely ineffective, but i'll throw that in as well. now, the big question is, what about the v-shaped barn burner of a recovery. is that still on the table? i think it is. but there may be disagreements. the question is now for stocks, can they beat the october jitters and keep moving higher through the end of the year? i'm still looking for some strength in stocks, and then we're going to have to talk about why treasury bond rates are falling and what about this fed debate in full open view? don kohn says no. kevin warsh and dick fisher says the fed should tighten sooner
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and harsher. we've got vince reinhart and bank of america chief economist mickey leva. fee they were featured speakers today we were a little light on the numbers. durable goods looked pretty soft. chicago looked pretty soft. is the profits recovery still on track? >> the answer is yes on both. i think the economy will grow faster than expected. you have a tremendous amount of fiscal stimulus and, you know, you're on track for a nice bounce back.
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i would also add that even if you get a gradual rebound in the economy, you get a v-shaped rebound in corporate profits because businesses were able to maintain their productivity gains through a deep recession. let me add one other point. i'm not a stock market strategist, but if you look at the level of the stock market, it's still below where it was just prior to the financial crisis and that crisis is over. >> that's a very important point. financials have led the way. you have this upward sloping yield curve, zero percentage interest rate. you're noing your head up and down. do you agree with mickey the profit story is going to be v-shaped. the rally, this winter, spring and summer really was hugely about better profits and better profits expectations, charlie. what's your take?
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>> i agree with you. the is, is it sustainable a year from now. i'm less worried about fed exit than i used to be. the fed is, despite apparent disagreement that you alluded to before, is saying the right things about moving pretty rapidly, once they get the signal that they need to move and they' also been telling the market how they're going to do it, larry, with these reverse repurchase agreements that solves a big problem that's been worrying me. how does the fed move its balance sheet and the fed has solved that problem. i think we're hearing the right things from the fed, too, about the medium term. what worries me is the other stuff coming from washington on the fiscal side, tax policy side, policy side and all the rest of it. vince reinhart, i agree that the fed can sell bonds back and
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drain cash. i agree with that. lord knows you were there. but i want to ask you, from what i gather, donald cohn, an important guy, vice chair now, an important guy, he said no, kevin warsch of the fed with the speech in the op-ed last week and dick fisher this week with an idea of a sooner exit strategy, a tougher response, a faster timing, as i understood it, cohn said no hay, jose. that's not the way it's going to work. i want to ask you, who's going to win? warsch or cohn is the exit going to be sooner or later? is it going tobacco faster or slower? because this stuff is really going to impact stocks. >> so what they both said they'll exit when they think it's appropriate. i think kevin warch got everybody leaning towards a quicker exit, a more forceful exit. and dick fisher was emphasizing the forcefulness of the exit.
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what he was saying is the federal reserve was aggressive on the way down in terms of cutting rates and providing accommodation. they should be equally as aggressive on the way up, that is removing that accommodation. that doesn't tell you when you start. what vice chairman cohn reminded everybody is it's going to depend on the data. they'll start when they think it might be ready. it could be faster, but it also could be slower. >> look, i worked with the fed a long time ago. but i was such a junior junior, i wasn't a part of it. you were a senior senior. i thought there was a wizard of oz manipulating what they say. but there seed sooems to be a war. a fed war going on. warsch said be tough, tough, tough, and don cohn says no, no, no we won't. >> so what's the contribution ben bernanke has made it for the federal reserve? he's trying to make it more democratic.
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fmoc is more open. he's not leaning on his colleagues to speak all from the same page. conspiracies never worked anyway. and people overemphasized the man behind the curtain. sometimes accusing it to be me. it just -- it's not that common. and i think chairman bernanke has pushed that a little further. it's a more democratic institution. you're hearing a range of views. >> mickey levy, we're going to get a bunch of numbers tomorrow, and that's going to launch the fourth quarter for stocks, toñi see if this incredible 2009 rally continues. we're going to get the ism manufacturing. i think people are getting wobbly. we're going to get personal income and consumer spending. we're going to get auto sales. people are very concerned about that. mickey, what are you thinking here? is the data going to come out of the chute strong or weak? the stock market hinges on every single statistical release snp.
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>> i wouldn't hang my hat on any group of numbers, but i think what you're going to see in the fourth quarter is continuation of growth. we had strong growth in the fourth quarter. i think the holiday retail season will be stronger than we think and stronger than businesses think going in with lean inventories. >> i just want you to qualify. strong growth in q-3, strong growth in the third quarter. what's your number, my friend. >> numbers are 3.5% plus on an annualized basis. some may have been due to cash for clunker, but cash for clunkers borrowed from current nonauto sales. so some may come in the fourth quarter. so once again, this is very fashionable. year not going to get a double
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dip and once the economy starts growing it will the gather nice momentum. bond rates have been headed south. it doesn't look that fwhad that picture. he says that's a sign of deflation and deleveraging. i want r i want to get your take on that. >> they don't think there's going to be acceleration of deflation for some time. i think it's talking more about monetary policy expectations and
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inflation expectations. >> you're siding then with the don cohn interpretation, that the fed is going to have an extended period and they might not tighten in my lifetime is that right? >> yes. well, see, i think that all of the fed spokesman have gotten one thing right, which is once they agree that it's time to move they're going to move quickly. and i think like vince said, that's the most important thing. but we still have a huge credit crunch. i' not expecting the fed to move too quickly. >> that's essentially what bill gross is suggesting, by the way. i think he calls the new normal, 2% to 3% growth. do you agree with what charles just said? do you think they will take years and years? or do you think the fed will move stronger going 50s and 75
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basis point move? >> when they get moving they really move. they're going to be similar metically aggressive. >> they have been for a long time, vince. >> they net no central bank issue. look at policy rates, they go down quickly. they come up slowly. however, chairman bernanke has emphasized aggressiveness of policy. and i think that the bargain is he did it on the way down. he should do it on the way up. >> if there's 3%, 4%, 5% inflation because of the fed, that's got to be great for stocks in the short run but we're going to pay the pipener the medium and longer run, aren't sfwhe. >> i don't think we're going to have that type of inflation in the near term. you have slackened the economy. but let me disagree with the point you made earlier on. when the fed starts hiking rates, the stock market may not fall because they'll hike rates when the economy has legs on it
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and the economy is rising. it's natural for rates to rise as economies are growing. >> i think that mickey there's a barn burner of a profit res coverry, which i think you said, a v-shaped recovery. but if the fed goes in .50 in .50s .75s, i think that's a challenge for the stock market. but we'll revisit this. it's a great plez sewer to see all of you. thank you, gentlemen. coming up, forbes has literally just released its annual list of america's wealthiest. bill gates topped it for the last 15 years. so who's america's richest in 2009? stay with us. ewe're coming back. don't go away. (announcer) when you need it fast.
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welcome back. a short while ago, i spoke with house minority leader ohio republican congressman john boehner about some of the big issues facing washington, especially mr. obama's trip to copenhagen on the chicago olympics. please take a listen.
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>> you have been a major critic of president obama going to copenhagen to sell the chicago olympics. a lot of people say that's local politics and he shouldn't be involved in it. first of all, what's your take? >> there's a lot going on in america. many are wondering where are the jobs and why is washington spending all this money? he's not the mayor of chicago. so going to copenhagen in the mid of the of the problem wes ear trying to work through in washington doesn't seem appropriate. >> what do you make of the fact that i think former and current republican presidential candidate, former governor mitt romney of massachusetts has come out and endorsed obama's trip to copenhagen, what do you make of that? he's an active guy and an important guy. >> listen, i would love for the olympics to go to chicago, but the president really doesn't need to go overboard. and i think taking two air force
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one, two 747s to copenhagen is over the top. some people might be for it. i understand that. i just think that at a time when we've got big debates in washington about our future in afghanistan, what's going to happen with trying to improve our health care system, it's just not the right time for the president to be doing this. >> all right. i appreciate that point of view, but i do want to ask you again, because there's a lot of news about this. japan, for example, their new prime minister is going over to make the pitch. spain, both king carlos king juan carlos and their prime minister are going over to make the pitch. years ago, tony blair and vladimir putin went over to make the olympic pitch. so if president obama doesn't go over there, is the united states less competitive? is it possible h he's right and you've got it wrong? >> larry, he's the president of the united states of america. the world leader, and i just
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believe that this is over the top. he could have sent a letter, he could have sent a video. there's a lot of things he could have done. but the american people are concerned about issues that are affecting their lives today and what he and the congress ought to be doing are doing those things that are going to help fwet our economy moving again and to help create more jobs in unfortunately, all the policies that they seem to be pushing here in washington are killing jobs and will kill more jobs if they're successful at gem getting them passed. >> the democrats held some kind of press conference today to protect medicare. i spoke to representative defazio this morning. he wants a special cost of living adjustment. what's your take on that? the democrats all of a sudden coming to the defense of medicare. >> well, this is just a joke. and as i said in my press release, are you kidding me? these are the people who are calling for a $500 billion cut in medicare over the next ten years and yet they have the
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audacity to stand up and say well, we're protecting medicare. this just doesn't fly. if you're one of the 6 million americans who are on medicare who get your medicare through medicare advantage, say goodbye. because it's one of the programs that they want to cut. and even the congressional budget office has come out and made clear that if you have $500 billion worth of custom medicare, services are going to be cut for seniors. so let's stop kidding ourselves. a press release and a press conference is not going to be enough to convince seniors to support their ill thought yacht youth bill. >> and one more, you got a new cap and trade bill coming out of the senate. senator kerry, senator boxer. i want to ask you, the house has already passed one. what's your assessment of cap and trade this year. is it dead or alive? >> it's derd than a door nail, larry. listen, they got this thing through the house, and there are a owhole lot of house members, democrats and republicans who
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will tell you it's the worst vote they ever cast. the senators have all heard the stories, they've all heard from their constituents. this bill has not one chance of becoming law this year. >> all right, john boehner, we appreciate your time very, very much. there you have it. for 15 years, bill gates has the top spot of the richest men in america. did he hold on to the top spot? gecko vo: geico's the third-largest
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car insurance company in the nation. but, it's not like we're kicking back, now, havin' a cuppa tea. gecko vo: takes lots of sweat to become that big. gecko vo: 'course, geckos don't literally sweat... it's just not our thing... gecko vo: ...but i do work hard, mind you. gecko vo: first rule of "hard work equals success." gecko vo: that's why geico is consistently rated excellent or better in terms of financial strength. gecko vo: second rule: "don't steal a coworker's egg salad, 'specially if it's marked "the gecko." come on people.
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$950. so you only have to be a millionaire to get on the forbes 400 this year which is a radical change from the past couple of years. so a billionaire bloodbath, i love that. does that mean they should be eligible for fiscal stimulus packages? >> no, absolutely not.
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most of them would not take your handouts at all. they want to use the free markets in order to keep building their fortunes up. but what's really interested. i was talking to five billionaires this week. as we were going to press, i asked what they were doing with their cash and something really alarming came new these conversations. a lot of them said they got out at the bottom in march, they're holding cash, gold and muni bonds and that to me is really scary. remember, these people really control the economy. they control markets. you want them to have their investable income in the markets. >> they have an impact on investment and jobs for that matter and you're saying they pulled back into cash. that can't be good. were there any big winners? >> there was a huge winner, andy beal was a bottom feeder, buying
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up bad assets. the financials were basically dumping. >> and mr. buffet seemed to be the biggest loser, is that correct? i. >> i love the individual stories, too. thank you for your report. catch me tomorrow morning. i'll be on the call. melissa and trash, 11:00 a.m. i'm still bowled over by the supply side tax reform story in california. tax somethingless and you'll get more, california. we know why we're here. to stand behind all who serve. ♪ to deliver the technologies... vital to freedom. ♪
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to help carry hope to those in need. ♪ around the globe, the people of boeing... are working together -- for what matters most. that's why we're here. ♪

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